Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (a) For the purposes of this act:

(1) "Escrow agreement" means a written or oral agreement under which money, documents, instruments or other property is delivered by a party to the agreement or another person to a third party to be held by such third party for delivery or disbursement to another party to the agreement or another person upon the occurrence of an event or condition specified in the agreement.

(2) "Escrow holder" means a third party to whom money, documents, instruments or other property is delivered for subsequent delivery or disbursement in accordance with the escrow agreement.

(b) No escrow agreement shall be ineffective, invalid or unenforceable because the escrow holder is the attorney-at-law, law firm or agent for one or more parties to the escrow agreement, whether in connection with the matter to which the escrow agreement is related or otherwise.

Sec. 2. This act shall take effect from its passage and shall be applicable to any escrow agreement in existence on or after said date.